An investment project has the following cash flows: CF0=-1,000,000; C01-C08=200,000 each a) If the required rate of
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An investment project has the following cash flows: CF0=-1,000,000; C01-C08=200,000 each
a) If the required rate of return is 12%, what decision should be made using NPV?
b) How would the IRR decision rule be used for this project, and what decision would be reached?
c) How are the above two decisions related?
Expert Answer:
a To evaluate the investment project using the Net Present Value NPV method we need to discount each cash flow to its present value and sum them up If ... View the full answer
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